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A Day in the life of a Private Banker

The world of private banking often seems mysterious and exotic to those of us not in that high strata of the ultra-wealthy. To go behind closed doors and find out what private bankers actually do, TODAY spoke with Cem Azak, Senior Managing Director at Switzerland-headquartered EFG Bank, and Stacy Swee, Senior Vice President at Singapore-headquartered DBS Private Bank. This week we’ll look at what they do every day, and next week we’ll look at how they developed their skills as private bankers and any unusual requests they’ve received.

Pedestrians look at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, June 17. Asian stock markets bounced back on Friday, as U.S. consumer price data helped calm investor sentiment, one day after Bank of Japan's decision not to add stimulus measures sparked heavy losses. Investors stayed focused on the next week's referendum on whether Britain would stay in the European Union. Photo: AP

Pedestrians look at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, June 17. Asian stock markets bounced back on Friday, as U.S. consumer price data helped calm investor sentiment, one day after Bank of Japan's decision not to add stimulus measures sparked heavy losses. Investors stayed focused on the next week's referendum on whether Britain would stay in the European Union. Photo: AP

The world of private banking often seems mysterious and exotic to those of us not in that high strata of the ultra-wealthy. To go behind closed doors and find out what private bankers actually do, TODAY spoke with Cem Azak, Senior Managing Director at Switzerland-headquartered EFG Bank, and Stacy Swee, Senior Vice President at Singapore-headquartered DBS Private Bank. This week we’ll look at what they do every day, and next week we’ll look at how they developed their skills as private bankers and any unusual requests they’ve received.

BECOMING A TRUSTED ADVISOR

Before looking at what private bankers do, it’s essential to find out what they are trying to achieve for their clients.

The most important service for the ultra-wealthy, Mr Azak explained, is to think ahead and preserve their wealth. “We see ourselves as guardians of the client’s money, then generate income on top for them.”

“The best thing you can achieve,” he said, ”is to become a trusted advisor of the client and their family.” Indeed, some clients call him anytime they have a question about the financial world.

He’s also thinking ahead to the next generation. As client relations evolve and families change, he has to make sure the next generation is able to steer the wealth of the family in the way that the founders of that wealth intended. “You have to look ahead ten to fifteen years.”

Ms Swee similarly said that her key goals for her clients are asset protection and succession planning. The bank can also help with trust planning, for example by setting up a trust to take care of the children and wife in case anything happens to the client. What’s most important, Swee said, is building trust between herself and her clients.

Clients may also have more than just personal investment needs, so she brings in colleagues from other units when they need assistance such as corporate banking support for their business. “We try to offer a one-bank solution.”

Looking ahead to the next generation, DBS invites clients’ children to a yearly event where it provides education on wealth management.

LONG HOURS A NORM

To serve their clients, private bankers work long hours.

On a daily basis, Ms Swee said, she comes in early and goes through her overnight email, then heads to a morning meeting to talk about trends in the markets. After that meeting, she talks with her team of relationship managers about their plans for the day.

She then heads back to her desk to focus on her clients. She works with investment counsellors and determines what is most appropriate to buy or sell in the client’s portfolio, with counsellors participating in calls when their specialised expertise is needed. The bank tends to stick with products traded on exchanges and doesn’t invest clients’ funds in property, though it can help them buy or sell properties they select in Singapore or overseas.

She spends time meeting with her own clients and also meets with her team’s clients when they need someone more senior to add more value.

Ms Swee said her clients do use apps for their banking needs. While there’s a lot clients can do on apps, certain things require her to meet clients face-to-face to provide bespoke service.

Mr Azak also works long hours, saying that on a typical day he gets up quite early so he can screen his email and the global markets to look for relevant financial news. If anything happened overnight that might affect his clients, who have investments around the globe, he wants to know immediately so he can reposition his clients’ portfolios. He then heads to the office, where he screens his clients’ portfolios.

Next, he moves on to team meetings as well as meetings with bank management and clients, figuring out how he can add value for his clients. “You have to have a clear plan,” Mr Azak said. “You learn to look at the whole picture and implement steps of your plans.”

When the bank has a request from a client, “we try to resolve it very fast. Even if we cannot solve it within five minutes, we acknowledge it. We will come back to the client within the day.” It’s not easy, since he often has to coordinate the response with colleagues in other regions.

Mr Azak said he sometimes needs to protect clients from themselves, especially if they heard or read something brief and want to invest in a company that may be too risky or not suitable. Mr Azak does fundamental analysis on companies to advise whether the investment is actually appropriate.

“What I’ve learned over time is that you gather a lot of information through experience and learn to connect the dots.” When the Brexit vote happened, for example, he worked round the clock for several days looking for ways to use the opportunity for his clients’ advantage.

While digital banking is common for consumers, Mr Azak said that the ultra-wealthy still need the interface with a human being. The reason he said, is that “we’re talking about long-term investments and more complex portfolios. It’s not like a bank transfer. For simpler products you can use it.”

Mr Azak said he works an average of 80-100 hours per week. “There is not really an instance where you are not available. It has to look easy from the outside, but it’s hard work.” It can also be challenging to provide the right advice that his client will agree with, since his clients are quite sophisticated and some are active in the financial sector themselves.

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